Hey friends!

Welcome to another edition of Aligned Incentives, the newsletter from ShareWillow. 

Coming up this week: 

United Auto Workers members working at Ford plants will receive larger profit-sharing checks this year despite the 2023 auto strike.

Ford announced Tuesday that hourly employees will receive an average of $10,416, which is an increase from $9,176 a year ago. Profit-sharing is negotiated by the union as part of its collective bargaining agreement with each of the Detroit Three automakers.

U.S. hourly employees will receive the checks. Temporary workers are eligible for profit-sharing for the first time.

In Louisville, about 12,000 Ford workers at the Kentucky Truck Plant and Louisville Assembly Plant are eligible. Workers should begin seeing checks in mid-March.

The amount workers receive is based on the number of hours worked.

Go deeper: See the full article here.

Andersen Corporation (Andersen), manufacturer of America's most loved brand of windows and doors*, announced today it will pay out $55.4 million in 2023 to eligible employees as part of the company's annual profit sharing program.

In recognition of employee contributions to Andersen's 2023 business performance, the company paid $55.4 million – up to $4,400 per eligible employee – as part of the company's annual profit sharing program.  

Read the press release here.

Marvin is sharing $20 million in profits with its employees, a 59% increase over payments made in 2022.

The move comes in a period of growth and investment for the Warroad-based window and door manufacturer, as the family-owned Marvin charts a new path for the future.

"There's a lot of investments going in there, hundreds of millions of dollars over over the next five years," said Paul Marvin, CEO since 2017.

Despite the disruptions of the pandemic and supply chain issues, the company has continued to grow in the past few years. Coming out of that hectic and confusing period, the family and company leaders started to put together long-term goals in 2022.

The plan focuses on foundational operational improvements, customer service and maintaining the family-run, employee-focused culture of the company.

"It turns out that a good employee value proposition is treating your employees well. Giving your employees a reason not just to join, but to stay. It's pretty powerful," Marvin said.

Read the full article here (no paywall).

What is the 50-50 profit-sharing formula?
The formula was introduced as one of the central pillars of the OneVision strategic plan. In simple terms, the formula means that any net profits (before income tax) above Base Prize Money across the ATP Masters 1000 category are split 50-50 with players. This means that players are sharing in the financial upside of tournaments for the first time in the history of the ATP Tour.

How does it work?

1. Tournaments take place, with guaranteed Base Prize Money paid out to players as usual.

2. Following each tournament, its financials (incl. all revenues, costs) are fully audited. This is done for each of the nine ATP Masters 1000 tournaments.

3. Profits are aggregated across the whole category (nine ATP Masters 1000 tournaments). If the profits exceed the value of the total Base Prize Money paid out across the category that year, the excess is shared 50-50 with the players via a Bonus Pool payment.

Check out the ATP Tour Q&A article here.

Shameless plug but if you want to implement profit sharing at your company, book a call with me here.

Due to the high volume of requests, we’ve started doing plan design consultations. We will build you a custom profit sharing plan based on your business goals. You can learn more here.